A quality rental property relies on both intangible and tangible characteristics. Every investor has their own preferred criteria for the best rental property, however, there are some universal qualities that all investors can agree on. Here are some suggestions to transform the investment you have made into top rental property.
Location
If you have a rental property that is in a desirable location means you’ll have lots of tenants to choose from. Your property will be sought-after, and you should see very low or no vacancy. To ensure your property is secure, it is a good idea to have to add into the suggested vacancy rates in the rental proforma. Good rental properties are generally close to high-performing school systems supermarkets, grocery stores, entertainment, shopping, and might also be just a brief drive away from major highways, or other major attractions within the state.
Cash Flow & Growth Potential
A good rental property will be able to generate an annual cash flow that is positive each month, with no costs and a low vacancy. Your rental property can be ideal in the event that it has potential to grow. If it’s in a prime area and the demand is high, then you’ll be able to justify increasing rent, especially if the tenant is moving out and another is lining up to move into the property. Be sure to keep in mind the current rental market and keep near the rate. If you rate your rent excessively, you could discourage tenants.
Property Condition
A property that is a good investment is one that is in good condition. You might need to make some improvements to your bathroom or kitchen when you first made the investment, but it’s worth it. Tenants will spend more for good, top-quality services. Keep in mind that the better the state of the house it is, the fewer repairs are required, and the less likely tenants will consider it a luxury. They will generally strive to keep the house in top condition for you!
Property Management
A successful rental property requires excellent property management! You might want to think about hiring a property management service to help turn the investment you have made into fantastic rental property. To find a reliable property manager, contact us to discuss your requirements and the degree of involvement. You must ensure that you keep the integrity of the building and the surrounding yard, as well as the majority of appliances, as well as HVAC systems.
Property Value
A property that is a great rental is likely to be worth more than the amount you paid! To make this occur, you might need to buy your rental as an uninhabitable property and then put some cash into it. If it’s located in an area with the proper demand, your property’s will gradually increase in value and yield a huge profit in the near future! Be sure to hang the property for more than one year. The longer, the better, for a reduction in tax on capital gains. In the event of this, it is an ideal exit strategy.
Market Trends
It is crucial to keep a watch on the trends in the market for the rental property you own. It is important to ensure your rental property is in line with the market rates for rental and value of the property. This will allow your property to get the most money is possible in a rental property. It will also tell you when the ideal moment for selling your property. If the market begins to take the opposite direction, and you are looking to ensure that you get your rental property sold while it is still making profits!
A good Rental Property is dependent on the tangible and intangible aspects. Every investor has their own preferred criteria for an excellent rental property, however, there are some universal qualities that all investors can agree on. Here are some tips to transform an investment in your property into top rental property.
